It’s time to tap the great potential of digital solutions to decarbonise our buildings

Digital solutions are essential to the rapid decarbonisation of buildings and could contribute significantly to achieving the 1.5°C pathway. Often underestimated, it is now time to embrace this new set of technologies. In other words: crack modern problems with modern solutions. Not only does digital bring significant carbon reduction, but it also comes with very competitive paybacks and shows significant future potential. Digital technologies focus on the actual energy use of building occupants, resulting in faster paybacks, on average less than eight years (for tertiary buildings on average less than five years). Also, digital efficiency solutions bring 20-30 percent carbon abatement across the building stock. But most importantly, this toolbox of digital solutions is already available, quickly deployable, and is applicable across all the current building stock. The potential carbon abatement of digital solutions – around 1 Gt CO2/y (1) – in the building stock is thus highly underestimated.

The EU set itself the ambitious target of becoming the first climate-neutral continent in 2050. To achieve this goal, the penetration of digital efficiency solutions is ultimately inevitable. The real question, given their multiple benefits, is not to qualify the need for such technologies, but how to create the right framework to accelerate their deployment across the board rapidly.

 

Bertrand Deprez
Vice President EU Government Affairs
Schneider Electric

 

(1) IEA 2021 Net Zero scenario and under the assumption that 2/3 of the existing stock is still standing by 2050, new build is zero-carbon, all additional electricity demand (for the new stock) is zero-carbon and 100 percent digital technologies penetration.

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Making the Energy Efficiency Directive fit for 55%

Following the adoption of the Climate Law and in view of its higher climate ambition for 2030 and 2050, the European Commission proposed to revise the Energy Efficiency Directive. Energy efficiency must become the bedrock of a decarbonised energy system.

Amending the Energy Efficiency Directive (EED) is the starting point for the Union to deliver on the necessary reduction of energy demand, to define and operationalise the Energy Efficiency First principle and to set the right policy mechanisms that would address the overall efficiency of the energy supply chain. These are the necessary conditions to achieve a highly efficient and renewable-based energy system in view of the full decarbonisation of our economy.

This paper contains the recommendations of the European Alliance to Save Energy to help making the EED fit for 55% and set the longer track to achieving climate neutrality by 2050.

The recommendations touch upon:

  • Energy efficiency targets for increased ambition
  • Public sector leading by example
  • Expanding the scope to all public and private non-residential buildings
  • Public procurement
  • Align the Energy Savings Obligation with 2030 and 2050 ambition
  • Energy audits and management systems
  • Energy efficiency in Heating and Cooling
  • Demand response and efficiency in transformation and distribution networks
  • Availability of qualification, accreditation and certification schemes
  • Information and training
  • Energy services market
  • Energy efficiency national funds and other support mechanisms
  • Primary Energy Factor

Read the full paper

 

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Response to targeted review of the GBER with revised rules for State aid

The European Green Deal target to reach climate neutrality by 2050 calls for unprecedented levels of public and private investments accompanied by deep reforms. In this context, well-designed State Aid schemes will be key to unlock investments and make the best use of public funds.

The European Alliance to Save Energy is happy to provide its feedback on the revised GBER. Energy efficiency is the bedrock of a decarbonised EU energy system: energy efficiency gains are essential to achieve the increased GHG emission target reduction of 55% by 2030 and full decarbonisation by 2050.

In its current form, the revised GBER offers some welcomed added flexibility for the application of state aid to energy efficiency projects. Energy efficiency is a precondition for a full integration of renewables and the phase out fossil fuels. Yet, in its current form the GBER does not provide the necessary level playing field with renewable energy sources and other energy supply measures. In particular the aid intensity levels for energy efficiency are lower and the rules on eligible costs are far more complex to apply.

EU-ASE therefore calls on the European Commission to:

1. Enshrine and enforce the “Energy Efficiency First principle” in the GBER
2. Level the playing field between energy efficiency measures and renewable energy sources (Art. 38 & 39 GBER)
3. Simplify cost eligibility and conditions for total cost eligibility (Art. 38)
4. Simplify the cconditions for the “incentive effect” (to favour the transition to MEPS)
5. Extend the scope of the Green Bonus (+ 15 points percentage) for high energy-efficiency projects

Download the full response
Download related response to the CEEAG
Read more in our paper: Boosting energy efficiency through the revision of State Aid rules

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MEPS paramount to address high energy prices and achieve the EU decarbonisation goals

Business organisations call for the introduction of mandatory Minimum Energy Performance Standards for the renovation of the buildings sector in the revision of the Energy Performance of Buildings Directive.

Today, together with major business organisations advocating for energy efficiency solutions in Europe, we addressed a letter to energy Commissioner Kadri Simson regarding the incoming revision of the EPBD.

The EU building stock must undergo a profound renovation to make it energy efficient and cut emissions. The Renovation Wave strategy foresees that the rate of building renovations must at least double to achieve our climate objectives. Renovating buildings is also the best medium and long-term solution to maintain energy prices low for consumers.

The introduction of mandatory minimum energy performance standards for all buildings is essential for the EU to deliver on its promises to make the European Green Deal as Europe’s growth strategy.

These standards can create the necessary regulatory framework to attract public and private investments, boosting the construction value chain and making the sector attractive to fill the skills gap.

Read the full letter here

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Letter in Financial Times: Renovating buildings will help reduce energy bills

On 9 November the Financial Times published in its print edition a letter by the president of the European Alliance to Save Energy, Monica Frassoni.

Stepping up building energy renovations offers a solution to the issue of soaring energy bills, yet this is overlooked by decision makers, the letter says.

Today, which energy efficient technologies, it is possible to reduce buildings’ energy needs for heating and cooling by 60%. Still the average renovation rate of the EU’s building stock remains under 1% per year.

With over 34m people living in energy poverty, we are playing with fire, the letter continues. Energy efficiency is a rational, cost-effective and systemic solution for the energy price surge.

Read the full letter here

The letter can also be found on the FT website.

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